New York’s regulated marijuana market has faced numerous funding and operational issues since adult-use sales launched in late 2022 but has largely avoided credit delinquencies between retailers, distributors and brands.
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Despite the presence of 171 operational retailers throughout the state, only two companies are on a regulator’s list for being 30 days past due on bill payments, according to Green Market Report.
The list, curated by the Office of Cannabis Management (OCM), was obtained by Green Market Report from an industry source.
The offenders are …
The two marijuana operators on the list through Aug. 28, both based in New York City, are Conditional Adult Use Retail Dispensary (CAURD) holders, the state’s version of social equity:
Smacked.
Royal Leaf NY, doing business as Statis.
New York is believed to be one of a few, if not the only, medical or recreational marijuana market with a credit law aimed to rein in unpaid invoices in the industry, a nationwide challenge that led to the historic collapse of Herbl, Medmen Enterprises and others.
Under New York law, operators that buy cannabis products on credit have 90 days to pay in full.
Payment and credit terms must be reported to the OCM, according to guidance from the agency.
Nonpayment is the No. 1 reason why cannabis companies fail, collections expert Brett Gelfand told MJBizDaily in August.
Delinquent payments in the regulated U.S. marijuana industry are likely to surpass $4 billion in 2024, according to Whitney Economics, an Oregon-headquartered cannabis data and research company.
Illicit marijuana crackdown continues
Meanwhile, New York City officials including Mayor Eric Adams recently destroyed 4-plus tons, or 576 bags, of illicit marijuana products seized by the NYC Sherriff’s Joint Compliance Task Force, according to a news release.
Since launching Operation Padlock to Protect in early May, New York City authorities have seized more than $63 million in illegal product and “shut down and sealed more than 1,000 illegal cannabis and smoke shops,” the release noted.
However, an August court ruling is threatening the city’s crackdown on illicit marijuana operators
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